The New Federal Tax Rules Will Hurt Some Taxpayers This Year

SOURCE Grapeson Wilson

CPA Grapeson Wilson warns those who live in high property tax areas and states with high income taxes may see their obligations rise if they don't plan ahead

HOUSTON, Feb. 12, 2019 /PRNewswire/ -- Tax filers who were expecting to pay less federal income tax this year may be in for an unpleasant surprise thanks to new regulations, CPA Grapeson Wilson says, "They may find the major portion of their itemized deduction has been wiped away."

Affected are taxpayers who previously itemized deductions because of property taxes, income taxes and other taxes on their Schedule A form. Under the new rules, their deductions are capped at $10,000.

To illustrate, Wilson says to consider the case of a married taxpayer filing a joint return with $15,000 in property taxes and state income taxes. Based on the old tax rules, this taxpayer would have been able to itemize $28,000. Under the new rules, the taxpayer can only itemize $23,000 provided all other variables remain the same. "This taxpayer may choose to take the standard deduction because it is higher than the itemized deduction," Wilson says.

Despite that, Wilson lauds the new tax reform for the benefits it provides to small- to medium-size businesses that make up a large portion of his client base. "Small-business owners are the backbone of the economy and lawmakers should never forget them," Wilson says. "They work hard. Their phone keeps ringing 24 hours and 7 days a week."

The "Tax Saver" course on Udemy is available for a limited time at $9.99here. Normally $24.99, the course features 44 minutes of video instruction, eight downloadable resources and instructions on maximizing tax deductions. Among the things buyers will learn is how they could be legally eligible for a tax deduction of $12,000 to $24,000 without spending a dime.

Credentials: With more than 20 years of business experience and almost 12 years of U.S. tax and accounting experience, Grapeson Wilson is president of Grapeson M. Wilson CPA LLC, a Houston-based CPA firm whose clients range from solopreneurs to multimillion-dollar corporations. He is the author of the course "Tax Saver Series (Standard Vs Itemized) Deductions." He is a licensed CPA and CGMA in Texas, as well as a member of the Houston CPA Society, Texas Society of Certified Public Accountants, and the American Institute of Certified Public Accountants. He holds masters' degrees in business administration and commerce.

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